Margin

The deposit held by your forex trading partner to establish and maintain your account. Forex Capital Management enables you to trade on a highly leveraged basis. You select the level of leverage or gearing, and unless you specify otherwise, your leverage level is set at the most lenient required level for your account size. Your account equity is the total value of the account adjusted for current profit and loss on any open positions.

Up to $50,000 - Minimum $1,000 in equity per open lot (1%)

$50,000 - $200,000 - Minimum $2,000 equity per open lot (2%)

$200,000 - $500,000 - Minimum $3,000 equity per open lot (3%)

$500,000 and Up - Minimum $5,000 equity per open lot (5%)

A lot has an approximate market value of US$100,000. So the requirement of US$1,000 per open lot is approximately equal to a maximum leverage ratio of 100:1. Our dealers constantly monitor leverage levels of all accounts. Although Forex Capital Management makes no guarantees, the dealing desk may attempt to contact clients whose accounts are near the minimum equity requirement for their open positions. Clients are fully responsible for monitoring the activity in their accounts.In the event that an account exceeds its maximum allowable leverage, the dealer has the right to liquidate all positions in the account.
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